Washington State

WA ride-share drivers about to get raise. Here’s what that means when new rates kick in

Uber and Lyft drivers will be seeing their pay increase in 2023, thanks to new rates approved by the state.
Uber and Lyft drivers will be seeing their pay increase in 2023, thanks to new rates approved by the state. AP

Drivers in ride-share programs will be getting a pay raise starting Jan. 1.

The establishment of new minimum rates will help boost pay of Washington ride-share drivers for transportation network companies, such as those with Uber Technologies and Lyft. The increases are the result of state legislative action earlier this year that codified the drivers as independent contractors.

House Bill 2076 also established new rights and protections, including minimum per mile and per minute rates, paid sick leave and worker’s compensation coverage.

Bloomberg Law reported in March that the new law “reflects a compromise among rideshare companies, drivers, and the Teamsters-affiliated Drivers Union — ensuring the companies can classify drivers as independent contractors while requiring them to provide benefits traditionally reserved for employees.”

The state Department of Labor & Industries is charged with enforcing the new requirements.

According to L&I, “On Sept. 30 of each year, L&I will adjust these rates based on the rate of inflation.”

L&I recently released its final inflation adjusted 2023 pay rates for drivers. In Seattle, those rates will be $1.50 per mile and 64 cents per minute, while Tacoma and the rest of the state will see $1.27 per mile and 37 cents per minute.

A chart showing the new pay rates in Tacoma for Uber/Lyft drivers starting Jan. 1.
A chart showing the new pay rates in Tacoma for Uber/Lyft drivers starting Jan. 1. Drivers Union

The Drivers Union was selected this month by L&I to operate the Driver Resource Center. The center builds on work the union took on at the Seattle Drivers Resolution Center, broadening support services statewide.

In Tacoma, the union said this week, “The new rates will mean 53 percent more pay per mile driven and a 279 percent increase for each minute driving.”

The new rates take effect Jan. 1. More information is available online at L&I’s website.

This story was originally published October 21, 2022 at 12:07 PM with the headline "WA ride-share drivers about to get raise. Here’s what that means when new rates kick in."

Debbie Cockrell
The News Tribune
Debbie Cockrell has been with The News Tribune since 2009. She reports on business and development, local and regional issues. 
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